Is product recall insurance included in product liability insurance?

Product Recall Insurance is not typically included in standard Product Liability Insurance policies. Product recall insurance is a separate type of coverage specifically designed to protect businesses in the event of a product recall.

Product recall insurance provides financial protection for the costs associated with recalling a defective product from the market. It covers expenses such as notifying customers, shipping and disposing of the recalled products, conducting investigations, public relations efforts, and potential business interruption losses.

Product liability insurance, on the other hand, covers third-party claims for bodily injury or property damage caused by a defect in the product you manufacture, distribute, or sell. It is meant to protect your business from liability claims brought by customers or users of the product due to its defects.

While product liability insurance covers the costs of legal defense and potential damages resulting from lawsuits arising from product defects, it does not cover the costs related to a product recall. Therefore, businesses that sell products in the market may need to consider both product liability insurance and product recall insurance to ensure comprehensive protection in case of a product-related incident.

If your business manufactures or sells products, it's crucial to evaluate your risk exposure and consider obtaining appropriate insurance coverage, including both product liability insurance and product recall insurance if necessary. Our agency can help you tailor insurance solutions to suit your specific business needs and industry risks.